- Updated August 22, 2013 BARRICK GOLD CORPORATION (-N) Mineral Resources / Metals & Mining / Gold The Average Score combines the quantitative analysis of six widely-used investment decision making tools: Earnings, Fundamental, Relative Valuation, Risk, Price Momentum and Insider Trading. A simple average of the underlying component ratings is normally distributed to rank stocks on a 1-10 scale (10 being awarded to the highest scored). These factors may be evaluated differently using alternative methodologies and the importance of individual factors varies across industries, market capitalization and investment styles. Additional criteria should always by used to evaluate a stock. 's current average score is relatively in-line with the market. AVERAGE SCORE 4 4 4 2 Metals & Mining Group 4.7 Mineral Resources Sector 4.6 S&P 500 Index 6.4 Giant Market Cap 6.6 6 1 Y 4 6 M 6 3 M 5 1 M 7 2 W 4 10 - (12/11/11) 2 - (03/03/13) 7.3 Analyst Recommendations Thomson Reuters I/B/E/S Mean: Hold (26 firms) Mean recommendation from all analysts covering the company on a standardized 1 to 5 scale. Sell Reduce Hold Buy Strong Buy Mean Key Information Price (08/21/13) 19.07 52-Week High 43.19 52-Week Low 13.43 Market Cap 19.4B Avg Daily Vol 17.9M Exchange NEW YORK Dividend Yield 1.1% Annual Dividend 0.20 Trailing PE -- Forward PE 9.4 Forward PEG 4.7 LTG Forecast 2.0% Exp Report Date 10/30/13 Annual Revenue CAD 14.3B ROE -52.6% Inst. Ownership 58.8% 1-Mo 15.3% 3-Mo -1.5% 1-Yr -48.3% Price Charts 1-Year Business Description 5-Year Barrick Gold Corporation (Barrick) is engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. Barrick also produces copper, principally from the Zaldivar and Lumwana mines and holds other interests, including a nickel development project located in Africa. Barrick's business is organized into seven primary operating segments: four regional gold businesses, a global copper business unit, an oil and gas business, and a capital projects group. Its producing gold mines are concentrated in three regional business units (RBU): North America, South America, and Australia Pacific. Its Copper business unit contains producing copper mines located in Chile and Zambia and a mine under construction located in Saudi Arabia. Barrick's North American RBU consists of its Cortez property (consisting of the Cortez mine and Cortez Hills mine, and also a material property, and 60% interest in the new Pueblo Viejo mine. Page 1 of 12
- Updated August 22, 2013 for -N Average Score AVERAGE SCORE The Average Score combines the quantitative analysis of six widely-used investment decision making tools: Earnings, Fundamental, Relative Valuation, Risk, Price Momentum and Insider Trading. A simple average of the underlying component ratings is normally distributed to rank stocks on a 1-10 scale (10 being awarded to the highest scored). These factors may be evaluated differently using alternative methodologies and the importance of individual factors varies across industries, market capitalization and investment styles. Additional criteria should always by used to evaluate a stock. Components Earnings Fundamental Relative Valuation Risk Price Momentum Insider Trading No Rating Details See Page 3 See Page 5 See Page 6 See Page 8 See Page 9 See Page 10 Optimized Score OPTIMIZED SCORE Historically, companies with an optimized score of 4 have tended to moderately underperform the market over the following 12-month period. As an alternative approach to equally weighting each of the six factors, independent research firm, Verus Analytics, conducted a backtest to empirically determine the optimal factor blend. Results and weighting vary across four different market capitalization categories. For large cap stocks, price momentum and insider trading historically provided the most explanatory power among the six factors and are weighted heavily in the current optimized score. Among the small cap universe, the earnings and fundamental factors joined with insider trading and price momentum to explain returns. Peer Analysis Ticker Average Score Market Cap Price (08/21/13) Dividend Yield Trailing PE Forward PE Forward PEG LTG Forecast Annual Revenue Net Margin 1-Mo 3-Mo GG 3 25.2B 30.12 2.0% 15.9 32.7 3.1 10.7% 4.6B -217.5% 10.2% 13.1% -23.3% SCCO 5 24.3B 27.88 11.9% 15.0 16.7 1.3 12.5% 6.2B 26.4% -0.2% -15.1% -15.0% 4 19.4B 19.07 1.1% -- 9.4 4.7 2.0% 13.6B -267.3% 15.3% -1.5% -48.3% 4 16.0B 31.84 3.1% 8.9 21.8 -- -23.2% 9.1B -101.3% 11.0% -0.3% -34.0% NUE 3 14.9B 45.73 3.2% 35.8 18.9 2.8 6.7% 18.5B 1.8% 0.2% -2.9% 13.4% AA 6 8.7B 7.84 1.5% 81.2 25.1 3.9 6.5% 23.4B -2.0% -2.9% -10.5% -11.1% 2 5.4B 30.79 2.9% 28.2 49.9 14.3 3.5% 1.7B -7.2% 8.8% 7.5% -34.0% 4 4.0B 60.48 1.3% 56.6 38.0 3.8 10.0% 289M 18.7% 32.4% 18.6% -25.8% 4 662M 2.52 -- -- -- -- -- 40M -82.8% 33.3% 15.1% -33.7% ANV 5 467M 4.32 -- 9.6 15.5 -- -- 250M 7.2% -37.2% -43.5% -85.6% GSS 4 192M 0.68 -- -- -- -- -- 513M -106.7% 43.1% 3.0% -50.0% Average 4.0 10.8B -- 3.4% 31.4 25.3 4.8 3.6% 7.1B -66.4% 10.4% -1.5% -31.6% Median 4.0 8.7B -- 2.4% 22.1 21.8 3.8 6.6% 4.6B -7.2% 10.2% -0.3% -33.7% Peer Group GG GOLDCORP INC. AGNICO-EAGLE MINES SCCO SOUTHERN COPPER ROYAL GOLD, INC. NEWMONT MINING MCEWEN MINING NUE NUCOR ANV ALLIED NEVADA CORP AA ALCOA INC GSS GOLDEN STAR RESOURCE Page 2 of 12 1-Yr
- Updated August 22, 2013 for -N Earnings The Earnings displays stocks on a scale of 1-10 with 10 being awarded to the strongest stocks based on a combination of three earnings factors: earnings surprise, broker recommendation changes and estimate revision. Each component is equally weighted. A stock needs to have at least two of the three earnings factors in order to receive a final earnings score. Sub-Components Earnings Surprise (33.3% Weight) EARNINGS 5 4 3 3 Metals & Mining Group 4.2 Mineral Resources Sector 4.2 S&P 500 Index 6.2 Giant Market Cap 6.4 Estimate Revision (33.3% Weight) 1 1 1 Y 6 M 6 3 M 4 1 M 9 2 W 8 10 - (10/23/11) 1 - (04/21/13) 5.8 Broker Rec Changes (33.3% Weight) Last 4 Quarters # Surprises (> 2%) 3 # Surprises (< -2%) 1 # In-Line (within 2%) 0 Avg Surprise 3.7% Last 4 Weeks # Up Revisions 8 # Down Revisions 6 Avg Up Revisions 30.8% Avg Down Revisions -23.1% Last 120 Days # Upgrades 1 # Downgrades 8 Highlights - currently has an Earnings Rating of 8, which is significantly more bullish than the Gold Industry average of 4.7. - On 08/01/13, the company announced quarterly earnings of 0.66 per share, a positive surprise of 17.4% above the consensus 0.56. Over the past 4 quarters, the company has reported 3 positive (>2%), 1 negative(<-2%), and 0 in-line (within 2%) surprises. The average surprise for this time period has been 3.7%. - 's current quarter consensus estimate has decreased notably over the past 90 days from 0.75 to 0.49, a loss of -35.2%. However, during the same time period, the average decline for the Industry was a greater -74.0%. Price Target The chart below indicates where analysts predict the stock price will be within the next 12 months, as compared to the current price. The high, low, and mean price targets are presented. 48 40 32 24 16 High 19.07 Mean 8 Price 12-Month Price Target Low 12-Month Price Target Mean 22.40 High 44.30 Low 14.40 Target vs. 17.5% # of Analysts 23 Page 3 of 12
- Updated August 22, 2013 for -N Earnings Per Share Earnings per share (EPS) is calculated by dividing a company's earnings by the number of shares outstanding. Analysts tend to interpret a pattern of increasing earnings as a sign of strength Quarterly 1.20 1.00 0.80 0.60 0.40 0.85 Actuals 1.11 0.92 0.66 Estimates 0.20 09-12 12-12 03-13 06-13 09-13 12-13 High Mean Low and flat or falling earnings as a sign of weakness. The charts below provide a comparison between a company's actual and estimated EPS, including the high and low forecasts. Annual 5.00 4.00 3.00 2.00 1.00 4.67 Actuals 3.82 Estimates 0.00 2011 2012 2013 2014 High Mean Low 09-13 12-13 FC Mean 0.49 0.51 High 0.65 0.70 Low 0.30 0.30 # of Analysts 17 17 Mean Estimate Trend NA = No Actual or Estimated EPS Q 09-13 Q 12-13 Y 2013 Y 2014 Price Target 0.49 0.51 2.57 2.30 22.40 30 Days 0.59 0.62 2.51 2.66 23.40 90 Days 0.75 0.79 3.09 3.27 32.20 % Chg - Last 90 Days -35.2% -35.8% -16.7% -29.4% -30.4% Next Expected Report Date: 10/30/13 2013 2014 FC Mean 2.57 2.30 High 3.23 3.70 Low 1.80 0.36 # of Analysts 24 25 NA = No Actual or Estimated EPS Distribution of Analyst Recommendations Strong Buy Buy Hold Reduce Sell 3 5 0 0 18 Earnings Surprise Investors frequently compare a company's actual earnings to the mean expectation of professional analysts. The difference between the two is referred to as a "positive" or "negative" Surprise Summary - Last 12 Quarters Surprise Type # % Quarters (> 2%) 7 58.3% Quarters (< -2%) 3 25.0% In-Line Quarters (within 2%) 2 16.7% surprise. Academic research has shown that when a company reports a surprise, it is often followed by more of the same surprise type. Surprise Detail - Last 6 Periods Surprise Type Announce Date Period End Date Actual EPS Mean EPS Surprise (%) POSITIVE 08/01/13 06/30/13 0.660 0.562 17.4% POSITIVE 04/24/13 03/31/13 0.920 0.879 4.7% POSITIVE 02/14/13 12/31/12 1.110 1.047 6.0% NEGATIVE 11/01/12 09/30/12 0.850 0.983-13.5% NEGATIVE 07/26/12 06/30/12 0.780 0.939-16.9% IN-LINE 05/02/12 03/31/12 1.090 1.108-1.6% Annual Revenue A pattern of increasing sales in conjunction with a rising EPS may influence a buy recommendation, while flat or falling sales and faltering earnings may explain a sell recommendation. A rising EPS with flat or falling sales may result from increased cost efficiency and margins, rather than market expansion. This chart shows the sales forecast trend of all analysts and the highest and lowest projections for the current and next fiscal year. 20B 18B Actuals Estimates 16B 14.3B 14.5B High 14B 12B Mean Low 10B 2011 2012 2013 2014 2013 2014 Mean 12.6B 12.5B High 14.5B 14.8B Low 11.8B 10.7B Forecasted Growth -13.1% -14.4% # of Analysts 19 19 NA = No Actual or Estimated Revenue Page 4 of 12
- Updated August 22, 2013 for -N Fundamental The Fundamental displays stocks on a scale of 1-10 with 10 being awarded to the strongest stocks based on a combination of four fundamental component factors: profitability, debt, earnings quality, and dividend. Each component is equally weighted. A stock needs to have at least three of the four fundamental factors present for a given fiscal quarter in order to receive a final fundamental score. Companies that do not pay a dividend are not penalized. Sub-Components Profitability FUNDAMENTAL 6 5 3 1 Metals & Mining Group 4.9 Mineral Resources Sector 5 S&P 500 Index 6.3 Giant Market Cap 6.5 Debt Earnings Quality 8 9 9 03-12 06-12 09-12 12-12 03-13 06-13 10 - (06/30/11) 5 - (12/31/13) 8.5 5 Dividend 8 5 Revenue Growth -2.4% For year over year Gross Margin 41.0% on Equity -52.6% Net Margin -267.3% Ratio 1.8 For year over year Debt-to-Capital 33.0% ending 12/12 Interest Funding 37.0% Interest Coverage -36.7 Days Sales in Inv. 150.0 For period ending 12/12 Days Sales in Rec. 16.4 For period ending 12/12 Div. Growth Rate 31.4% For year over year Dividend Funding 39.5% Dividend Coverage 8.6 ending 12/12 Div. Yield 1.1% ending 08/13 Highlights - 's Fundamental Rating declined significantly over the last quarter from 8 to 3. The average Fundamental Rating for its Gold Industry is 3.7 and the S&P 500 average is 6.9. - The company's days sales in inventory has been higher than its Industry average for each of the past five years. - Of the 7 firms within the Gold Industry, BARRICK GOLD is among the 4 companies that pay a dividend. The stock's dividend yield is currently 1.1%. Page 5 of 12
- Updated August 22, 2013 for -N Relative Valuation The Relative Valuation displays stocks on a scale of 1-10 with 10 being awarded to the strongest stocks based on a combination of three component factors: Forward PEG (50%), Trailing PE (25%), and Forward PE (25%). A stock needs to have at least one of the three relative valuation factors present in order to receive a final relative valuation score. Sub-Components Forward PEG (50% weight) Multiples significantly above the market or the stock's historic norms. RELATIVE VALUATION 7 2 1 NR Metals & Mining Group 5.3 Mineral Resources Sector 5.1 S&P 500 Index 5.7 Giant Market Cap 5.8 Trailing PE 10 1 Y 7 6 M 9 3 M 7 1 M 8 2 W 3 10 - (07/07/13) 1 - (05/09/10) 6.7 Forward PE Fwd. PEG 4.7 5-Yr Avg 1.5 Rel. to 5-Yr Avg. >100% Premium S&P 500 Fwd. PEG 1.8 Rel. To S&P 500 >100% Premium Tr. PE -- 5-Yr Avg 19.9 Rel. to 5-Yr Avg. -- S&P 500 Tr. PE 23.9 Rel. To S&P 500 -- Fwd. PE 9.4 5-Yr Avg 12.0 Rel. to 5-Yr Avg. 21% Discount S&P 500 Fwd. PE 18.7 Rel. To S&P 500 50% Discount Page 6 of 12
- Updated August 22, 2013 for -N Highlights - 's Valuation Rating worsened significantly over the past two weeks from 8 to 3. - 's 4.7 Forward PEG is at the high end of its 5-year range (lowest 0.1 to highest 5.0). - Based on Forward P/E, currently trades at a 65% Discount to its Gold Industry peers. On average, the company has traded at a 50% Discount over the past five years. Trailing PE Trailing P/E is calculated using the most recent closing price (updated weekly) divided by the sum of the four most recently reported quarterly earnings. Trailing PE -- Index Avg 23.9 5yr Avg 19.9 Sector Avg 25.8 Forward PE Forward P/E is calculated using the most recent closing price (updated weekly) divided by the sum of the four upcoming quarterly consensus estimates. Forward PEG Forward PEG is calculated by dividing the Forward P/E by the five-year, long term forecasted growth rate. Forward PE 9.4 Index Avg 18.7 5yr Avg 12.0 Sector Avg 26.9 Forward PEG 4.7 Index Avg 1.8 5yr Avg 1.5 Sector Avg 4.5 Page 7 of 12
- Updated August 22, 2013 for -N Risk The Risk displays stocks on a scale of 1-10 with 10 being awarded to the least risky stocks. 'Risk' is derived by looking at a series of long (60-month) and short (90-day) term stock performance measures including volatility (standard deviation), magnitude of returns (best and worst day and month), beta (movement versus broader market), and correlation to the relevant index. Sub-Components Magnitude of s Moderate risk (medium volatility). RISK 5 4 3 1 Metals & Mining Group 4.3 Mineral Resources Sector 4.3 S&P 500 Index 8.2 Giant Market Cap 8.2 Volatility Beta (1-year) 4 1 Y 6 6 M 4 4 4 4 3 M 1 M 2 W 10 - (06/27/10) 3 - (07/07/13) 6.2 Correlation Daily s (last 90) Standard Deviation Beta vs. S&P 500 0.76 Correlation vs. S&P 500 Best 10.0% Last 90 Days 3.74 Days Only -0.34 Last 90 Days 10% Worst -8.3% Last 60 Months 14.10 Days Only 1.35 Last 60 Months 16% Monthly s (last 60) Intra-Day Swing Beta vs. Group 1.49 Correlation vs. Group Best 44.6% Last 90 Days Avg 4.3% Days Only 1.64 Last 90 Days 77% Worst -38.1% Last 90 Days Largest 9.1% Days Only 1.42 Last 60 Months 52% Highlights - currently has a Risk Rating of 4, which is significantly below the S&P 500 index average rating of 8.2. - On days when the market is up, shares typically decrease. On days when the market is down, the shares tend to decline by more than the S&P 500 index. - In both short-term and long-term periods, has shown low correlation (>=-0.1 and <0.2%) with the S&P 500 index. Thus, this stock would provide high levels of diversification to a portfolio similar to the broader market. - Over the last 90 days, 's Standard Deviation has been 3.7 while that of the S&P 500 index has been 0.8. Risk and Reward Analysis Best Daily Worst Daily Last 90 Days # Days Up # Days Down Largest Intra- Day Swing Last 60 Months Best Monthly Worst Monthly 10.0% -8.3% 31 33 9.1% 44.6% -38.1% S&P 500 1.5% -2.5% 33 30 2.5% 10.8% -16.9% Page 8 of 12
- Updated August 22, 2013 for -N Price Momentum The Price Momentum displays stocks on a scale of 1-10 with 10 being awarded to the strongest stocks based on a combination of two technical performance factors: relative strength (70% weight) and seasonality (30% weight). A stock's 1-month, 3-month, and 6-month relative strength indicators are considered and combined. The seasonality measure reflects a stock's and industry's historic price performance for each month over the past 10 years. Sub-Components Relative Strength (70% weight) Performance relatively in-line with the market. PRICE MOMENTUM 9 8 6 6 Metals & Mining Group 5.1 Mineral Resources Sector 5.1 S&P 500 Index 5.8 Giant Market Cap 6.1 5 1 Y 1 6 M 2 3 M 3 3 1 M 2 W 6 10 - (11/13/11) 1 - (04/28/13) 5.1 Seasonality (30%weight) Relative Strength (scale 1-100, 100 being the best) Industry Avg Last 1 Month 58 57 Last 3 Months 47 48 Last 6 Months 44 46 Price Performance Daily closing pricing data is used to calculate the price performance of a stock over five periods. The performance of the S&P 500 is also displayed as a means of comparison. 1 Week 1 Month 3 Month YTD -45.5% -2.5% -2.9% -1.5% -1.6% 1.8% 15.3% 15.2% S&P 500 Last 10 Years Avg AUG Avg SEP Avg OCT Company Avg 5.6% 4.3% -3.2% Industry Avg 6.6% 3.0% -2.9% Industry Rank 1 of 115 10 of 115 114 of 115 S&P 500 Close Price (08/21/13) 19.07 1643 52-Week High 43.19 1710 52-Week Low 13.43 1353 - On 08/21/13, closed at 19.07, 55.8% below its 52-week high and 42.0% above its 52-week low. - shares are currently trading 13.7% above their 50-day moving average of 16.77, and 25.2% below their 200-day moving average of 25.49. - The S&P 500 is currently 3.9% below its 52-week high and 21.4% above its 52-week low. 1 Year -48.3% 16.3% Page 9 of 12
- Updated August 22, 2013 for -N Insider Trading The Insider Trading displays stocks on a scale of 1-10 with 10 being awarded to the strongest stocks based on short-term and long-term legal insider trading behavior. The short-term view (60% weight) focuses primarily on insider transactions within the past 90 days. The long-term view (40% weight) looks at buying, selling and option exercise decisions over the past six months relative to other stocks within the same business sector. Sub-Components Short-Term (60% weight) INSIDER TRADING 8 5 5 NR Metals & Mining Group 6.1 Mineral Resources Sector 6 S&P 500 Index 3.6 Giant Market Cap 3.4 NA* NA* NA* NA* NA* NA* 1 Y 6 M 3 M 1 M 2 W -- -- -- Long-Term (40%weight) Purchases and Sells (Most recent transactions within the past 90 days) Name Role Tran Date Tran Type Shares No transactions for in the past 90 days. Seasonal Sells - Quarterly & Yearly (values in ) Time-series data for each quarter over the past three years allows you to easily analyze the longer-term trend in open-market insider selling. Year Q1 Q2 Q3 Q4 Year Total 2013 0 0 0 -- 0 2012 0 0 0 0 0 2011 0 0 0 0 0 2010 0 0 0 0 0 Institutional Holders (Updated weekly as of 08/17/13) The top five institutional holders are presented based on the total number of shares held. Institution Inst. Type # Shares Held Reported Date Van Eck Associates Corporation Inv Mgmt 39.6M 06/30/13 Wellington Management Compa... Inv Mgmt 35.4M 06/30/13 Bny Mellon Wealth Management Inv Mgmt 17.0M 06/30/13 Fidelity Management & Resea... Inv Mgmt 15.9M 06/30/13 Ci Investments Inc. Inv Mgmt 15.6M 06/30/13 Last 6 Months Total Shares Acquired -- Total Shares Disposed -- Net Shares (Acq - Disp) -- Sector Avg 539,783 Seasonal Buys - Quarterly & Yearly (values in ) Time-series data for each quarter over the past three years allows you to easily analyze the longer-term trend in open-market insider buying. Year Q1 Q2 Q3 Q4 Year Total 2013 0 0 0 -- 0 2012 0 0 0 0 0 2011 0 0 0 0 0 2010 0 0 0 0 0 Top Executive Holders The top five insider holders are presented based on the total number of direct holdings. Indirect holdings are excluded. Insider Name Role There is no available holdings information. # Direct Shares Values Reported Date Page 10 of 12
- Updated August 22, 2013 for -N DETAILED STOCK REPORT TIPS The Thomson Reuters Stock Report is a comprehensive, company-specific analysis that includes a proprietary Stock Rating along with underlying component indicators and supportive data elements. The report is updated daily, although some of the data elements and the ratings are updated weekly. Average Score The Average Score combines a quantitative analysis of six widely-used investment decision making tools - Earnings, Fundamental, Relative Valuation, Risk, Price Momentum, and Insider Trading. First, a simple average of the six underlying component ratings is calculated. Then, a normal distribution is used to rank each stock on a scale of 1 to 10, with 10 being most favorable. A score of 8 to 10 is considered positive, 4 to 7 is neutral, and 1 to 3 is negative. These six factors may be evaluated differently using alternative methodologies, and the importance of individual factors varies across groups, market capitalization and investment styles. Additional criteria should always be used to evaluate a stock. A stock must have sufficient data available for at least four of the six component indicators in order to receive an overall Average Score. United States Coverage: Of the 4,300 stocks within the Thomson Reuters U.S. universe, approximately 85% typically meet the criteria for generating a score. Optimized Score As an alternative to the average score, the Stock Report includes an Optimized Score generated by independent research firm, Verus Analytics. It uses the same six component ratings, but rather than equally weighting each of the factors, the weighting varies by market capitalization of the underlying security based on backtesting research. These scores are also updated weekly and distributed normally on a 1 to 10 scale, with 10 being best. The variable size is assigned monthly by ranking the market capitalization and assigning the appropriate category as follows: Large - Top 5.55% Mid - Next 13.87% Small - Next 34.68% Micro - Remaining 45.9% Components The six indicators that comprise the stock rating are displayed. Like the stock rating, the component rating scale is 1 to 10, with 10 being best. A company will receive an NR for No Rating if the required data elements or criteria are not met. Peer Analysis The Thomson Reuters Business Classification (TRBC) system is used for industry comparisons. It is designed to track and display the primary business of a corporation by grouping together correlated companies that offer products and services into similar end markets. The system includes 10 Economic Sectors, 28 Business Sectors, 54 Industry Groups, and 136 Industries. The Peer Analysis section of the report compares the company to its ten closest peers. The peers are selected from the industry based on similar market capitalization. The peer listing may have fewer than ten companies if there are fewer than ten companies within that industry. Highlights The Thomson Reuters proprietary automated text-generation system creates highlights summarizing the most noteworthy data. The bullets will vary by company and will change from week to week as different criteria are met. Earnings The Earnings Rating is based on a combination of three factors: earnings surprises, estimate revisions, and broker recommendation changes. Each factor is equally weighted. A stock needs to have at least two of the three earnings factors in order to receive a score. The company s current earnings indicator is presented for each factor alongside its four closest industry peers based on similar market capitalization. Earnings Surprise - The number of positive and negative surprises, along with the number of in-line announcements within the last 4 quarters. Estimate Revision - The number of up and down revisions and the average percentage change of those revisions within a 4 week period. Broker Recommendation Changes - The number of upgrades and downgrades in the last 120 days. The best, worst, and average earnings indicator scores over the last five years allow users to put the current score into historical context. The trend graph displays the company-level earnings indicator for six time periods: 1 year ago, 6 months ago, 3 months ago, 1 month ago, 2 weeks ago, and current. If there is no rating, an NA is inserted. Price Target The price target is based on the predictions of analysts covering the stock and shows the high, low and mean price expected within the next 12 months. Earnings Per Share The quarterly and annual earnings per share are presented, along with the mean, high and low. Quarterly data is available for the past 4 quarters (actual) and the next 2 quarters (estimated). Annual data is available for the past 2 years (actual) and the next 2 years (estimated). Earnings Surprises The surprise summary includes the total number of quarters (and percentage) in the past 12 quarters in which earnings surprises were positive, negative, or inline. In order to be recognized as a positive or negative surprise, the percent must be greater than 2% above or 2% below the consensus, respectively. The surprise detail section includes detailed information on a company's quarterly earnings reported for the most recent 6 quarters. The consensus analyst estimate is provided to determine if the actual earnings report represented a positive surprise, negative surprise, or in-line result. Mean Estimates The mean estimate trend shows how the consensus has changed over the past 30 and 90 days for the upcoming two quarters and two years. The percentage change is calculated for the company as a means for comparison by measuring the difference between the current consensus estimate and that of 90 days ago. Analyst Recommendations The Thomson Reuters I/B/E/S Mean is the mean recommendation of all analysts covering the stock. The recommendations are presented on a five-point standardized scale: strong buy, buy, hold, reduce, and sell. Fundamental The Fundamental Rating is based on a combination of four fundamental component factors: profitability, debt, earnings quality, and dividend. Each factor is equally weighted. A stock needs to have at least three of the four fundamental factors present for a given fiscal quarter in order to receive a final fundamental score. Companies that do not pay a dividend are not penalized. The company s current fundamental indicator is presented for each factor alongside its four closest industry peers based on similar market capitalization. Profitability is comprised of four data elements. Revenue Growth: (Net Sales Previous Net Sales) / Previous Net Sales Gross Margin: Gross Profit / Net Sales on Equity: Net Income / Total Equity Net Margin: Net Profit / Net Sales Debt is comprised of four data elements. Ratio: Assets / Liabilities Debt-to-Capital: Total Debt / Total Capital Interest Funding: Interest Expense / Operating Cash Flow Interest Coverage: (Pre-Tax Income + Interest Expense) / Interest Expense Earnings Quality is comprised of two data elements. Days Sales in Inventory: 365 / (Cost of Goods Sold / Inventory) Days Sales in Receivables: 365 / (Net Sales (Revenues) / Receivables) Dividend is comprised of four data elements. The company must have a current dividend yield. Dividend Growth Rate: (Dividends per Share Previous Dividends per Share) / Previous Dividends per Share Dividend Funding: Dividends / Operating Cash Flow Dividend Coverage: (Pre-Tax Income + Interest Expense) / (Interest Expense + Dividends) Dividend Yield: Annual Dividends per Share / Market Price per Share The best, worst and average fundamental indicator scores over the last five years allow users to put the current score into historical context. The trend graph displays the company-level fundamental indicator for the last 6 quarters. If there is no rating, an NA is inserted. Relative Valuation The Relative Valuation Rating is based on a combination of three component factors: Forward PEG (50% weight), Trailing P/E, and Forward P/E. These common valuation metrics are evaluated against the overall market, the index, and the company's own historic 5-year averages. A stock needs to have at least one of the three relative valuation factors present in order to receive a score. The company s current relative valuation indicator is presented for each factor alongside its four closest industry peers based on similar market capitalization. Trailing P/E: Close Price / Most Recent 4 Quarters of Earnings Forward P/E: Close Price/ Upcoming 4 Quarters of Earnings Forward PEG: Forward P/E / Long-Term Forecasted Growth Rate Page 11 of 12
- Updated August 22, 2013 for -N The best, worst, and average relative valuation indicator scores over the last five years allow users to put the current score into historical context. The trend graph displays the company-level relative valuation indicator for six time periods: 1 year ago, 6 months ago, 3 months ago, 1 month ago, 2 weeks ago, and current. If there is no rating, an NA is inserted. Valuation values are excluded when calculating the averages. A maximum value of 100 is placed on Trailing P/E and Forward P/E and a maximum value of 5 is placed on Forward PEG when calculating the averages. Higher values are rounded down to the maximum for the averages. Valuation Multiples The valuation multiples provide the Trailing P/E, Forward P/E, and Forward PEG for the company and the S&P 500 index average. In addition, a comparison of the current company s values to its 5-year average and the S&P 500 average are presented. A discount occurs when the company s Trailing P/E, Forward P/E, or Forward PEG is valued more favorably (lower) than that to which it is compared. Risk The Risk Rating displays stocks on a scale of 1 to 10 with 10 being awarded to the least risky stocks. It is derived by looking at a series of long-term (5-year) and short-term (90-day) stock performance measures including volatility, magnitude of returns, beta, and correlation. Each factor is equally weighted. A stock needs to have at least two of the four risk factors in order to receive a final score. The company s current risk indicator is presented for each factor alongside its four closest industry peers based on similar market capitalization. Magnitude of s The best / worst daily returns in the past 90 days and the best / worst monthly returns in the past 60 months. Volatility The standard deviation of the stock price over the last 90 days and last 60 months. The average and largest intra-day stock swing is another measure of volatility. Beta Measures the tendency of a security s returns to respond to swings in the market, based on the beta of the company versus the relevant index. Correlation Determines how closely the returns of the stock and the relevant index move together, measured over the last 90 days and last 60 months. The best, worst, and average risk indicator scores over the last five years allow users to put the current score into historical context. The trend graph displays the company-level risk indicator for six time periods: 1 year ago, 6 months ago, 3 months ago, 1 month ago, 2 weeks ago, and current. If there is no rating, an NA is inserted. Risk and Reward Analysis Price analysis for the company and the S&P 500 is provided over two time periods. Daily analysis is provided for the last 90 days, whereas monthly statistics are used for the last 60 months. Price Momentum The Price Momentum Rating is based on a combination of two technical performance factors: relative strength (70% weight) and seasonality (30% weight). A stock needs to have data for the relative strength factor in order to receive a price momentum score. The company s current price momentum indicator is presented for each factor alongside its four closest industry peers based on similar market capitalization. Relative Strength The relative strength of the company for the last 1 month, 3 months, and 6 months on a scale of 1 to 100. Seasonality The average monthly return (price performance) for the current month and next 2 months for the company and industry, over the past 10 years. A lower industry rank indicates a higher return. The best, worst, and average price momentum indicator scores over the last five years allow users to put the current score into historical context. The trend graph displays the company-level price momentum indicator for six time periods: 1 year ago, 6 months ago, 3 months ago, 1 month ago, 2 weeks ago, and current. If there is no rating, an NA is inserted. trading indicator is presented for each factor alongside its four closest industry peers based on similar market capitalization. Short-Term Insider Uses insider buy and sell transactions within the past 90 days. This factor is based on the Thomson Reuters quantitative insider trading model that considers the insider's role, consensus, number of shares, market capitalization of the company, and the historic stock performance following trades by the given insider. Long-Term Insider Looks at buying, selling and option exercise decisions over the past six months relative to other stocks within the same business sector. The net shares are presented alongside the business sector average as a means of comparison. The best, worst, and average insider trading indicator scores over the last five years allow users to put the current score into historical context. The trend graph displays the company-level insider trading indicator for six time periods: 1 year ago, 6 months ago, 3 months ago, 1 month ago, 2 weeks ago, and current. If there is no rating, an NA is inserted. Seasonal $ Sells / Buys The seasonal $ quarterly and yearly sell / buy section provides time-series data that allows an easy analysis of the longer-term trend in open-market insider buying and selling (option acquisitions are not considered). Data is presented based on the market value of the transactions. Transactions by trusts and corporations are excluded, along with buys greater than $10 million and sales greater than $50 million. The transaction totals within each quarter are the sum of all buys or sells for that time period. Each quarter is a calendar quarter, January through March, April through June, etc. The value for the full year is the sum of each of the four quarterly averages. Institutional and Executive Holders The top five institutional and executive holders of the company are listed in descending order, based on their total direct common share holdings (options are not considered). Indirect holdings are excluded, as the owner may not actually have investment discretion over these shares. This table is updated monthly. Insiders who have not filed any transactions or holdings over the past two years are excluded as this may indicate that the individual is no longer associated with the company. Additionally, direct shares held must be greater than 1,000 to be considered. Insider Roles AF - Affiliate B - Beneficial Owner CB - Chairman CEO - Chief Executive Officer CFO - Chief Financial Officer CM - Committee Member CO - Chief Operating Officer CT - Chief Technology Officer D - Director EVP - Exec Vice President GC - General Counsel DISCLAIMER O - Officer OH - Other P - President R - Retired SH - Shareholder SVP - Senior Vice President T - Trustee TR - Treasurer VC - Vice Chairman VP - Vice President All information in this report is assumed to be accurate to the best of our ability. Past performance is not a guarantee of future results. The information contained in this report is not to be construed as advice and should not be confused as any sort of advice. Thomson Reuters, its employees, officers or affiliates, in some instances, have long or short positions or holdings in the securities or other related investments of companies mentioned herein. Investors should consider this report as only a single factor in making their investment decision. Price Performance Daily close pricing data is used to calculate the price performance of a stock. The performance of the S&P 500 is also displayed as a means of comparison. Insider Trading The Insider Trading Rating is based on short-term (60% weight) and long-term (40% weight) legal insider trading behavior. A stock needs to have at least one of the two insider trading factors in order to receive a score. The company s current insider Page 12 of 12